The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
_CO A meeting of tile Federal ±teserve 3oarc1 was held in the office of the Federal eserve 3oard on Tuesday, September 22, 1925, at 11:15 a.m. : Governor Cris siner Platt :,:iller ::r. Jtarne s ;:r. Ounn ac_.;:ham . McIntosh Eddy, Secretary The Governor stated that the soecial order DLIS illeSS for this morning's meeting would be the resolution presented by ::r. hiller at the meetinc: on September 15th, as follows: "aesolved, That a reduction of holdings of government securities, to be followed in due course by an advance in the discount rate of the Federal Aeserve 3ank of New York, should. its discounts show an aporeciable increase, will be conducive to the maintenance of a good state of business sentiment and to a healthier credit si tuat ion.'' The Governor presented a letter, dated Jeptember 15th, from the Under Secretary of the Treasury, stating that the Secretary of the Treasury has quite distinct views on the above matter and suggesting that he be invited to the mJetin today. The Governor was author- ized to invite the Secretary into the meeting and left the room. Upon his return he reported that the Secretary was attending a meeting of t;:le Jaoinet, and the 3oard, therefore, postponed consideration of the s9ecial order and -oroceedo.d. with its regular business. The minutes of the meeting of the Federal deserve 3oard held. On September 17th wore read and approved. 9/22/25 -2- Matter approved, on initials on September 21st, namely, application of the Citizens National Bank of Rahway, New Jersey, for original stock (75 shares) in the Federal eserve Bank of New York, efiective if and When the Comptroller of the Currency authorizes the bank to commence business. Formally approved. Telegram dated September 21st from the Deputy Governor of the Federal deserve Bank of New York, advising that effective September 22nd the bank's minimum purchase rates on bankers acceptances will be increased to ii/o for maturities within forty-five aays and to 3 3/6„, for maturities from forty-six to ninety days, maturities over ninety days to remain unChanged. Noted with approval. deport of Committee on Examinations on memorandum aated September 16th from the Comptroller of the Currency, recommending approval of an application of the First National Bank of _-toy, i:ew Mexico, for nermi:sion to reduce its capital stock from i;50,000 to ,i 25,000 unuer certain conditions set forth in the memorandum; the Committbe also recommending approval. Approved. Telegram dated September 17th from Mr. E. J. Murphy of Clinton, Okla., advising that he will accept appointment by the Board as a director of the Oklahoma City Branch of the Federal eserve Bank of Kansas City for the Unexpired term ending December 31, 1927. ra, -3- 9/22/25 Upon motion, Ll.r. :.lurphy was formally appointed for the term mentioned. Letter dated Septemer 18th from the Governor of the Federal deserve ilan74 of Aichmend, advisin,7 of the action of the board of directors of that Bank in Luthorizing the construction of a five-story building to house the Baltimore branch at a cost of .,1,025,000, includLa -7 architect's fees; the Governor also stating that a resolution granting the necessary authority will be introduced at the forthcoming session of ConcTess and that the Building Committee of the Bank will appear before the Board at the proper time to explain the details of the proposed construction. Ordered circulated. natter approved on initials on September 21st, namely, report of Committee on 2;xaminations on letter dated September 16th from the Federal aeserve ont at Boston, transmittin3 and recommending acproval of the application of the State Street "2rust Company, Boston, Llassachusetts, for permission to purchase the :rational Union Bank of Boston; the Committee also recommending approval. Formally apT)roved. eport of CoLlmittee OA Salaries, Expenditures and Efficiency on letters dated 3eptember 17th from the Comptroller of the Currency, recommending salaries of .A400, v3,000 md „3,000, respectively, for ITational Bank Examiners Charles H. Loawer (junior grade), Harry L.. Norman (s)nior grade), and Lewis . Slkins (senior grade), to be assi'med to the 2hird, Seventh and .Ughth Federal deserve Districts, respectively; the Committee 9/22/25 also recommending approval. Approved. The Governor then reported that while in Cleveland last week he had taken up with the Governor of the Federal deserve Bank of Cleveland the inquiry made of the Board by Messrs. Cramer and Gordon, Attorneys at Cincinnati, with reference to the property at 4th and Aace Streets, Cincinnati, purchased by the Federal deserve Bank in 1920. He present- ed a letter addressed to him by the Governor of the Bank outlining in detail the transaction in question and expressed the opinion that inasmuch as the information was desired in connection with a suit being brouht against the sellers of the property, the Union Central Life Insurance Company of Cincinnati, by an insurance agent, the information contained in the letter ought not to be furnished to Messrs. Cramer and Gordon by the Board. Upon motion, the above letter was ordered circulated. The Governor then left the meeting and upon his return reported that he had seen the Secretary of the Treasury who had stated he did not believe it would be necessary for him to attend the meeting in connection with the consideration of the special order business. The Boardthen called into the meting the Oren Market Investment Committee for the Federal Aeserve System which is in session in 7:ashington today. Messrs. Strong, Harding, Hutt, Fancher and LIcDaagal, members 9/M/25 of the Committee, as well as Mr. I". R. Buril:ess, of the Federal deserve Bank of New York, and ')r. Stewart, Director of the Board's Division of Aosearch and Statistics, entered the room. The Chairman of the Committee stated that the Committee's recommendations were set forth in his report of this date, copies of Which were handed to the individual members of the Federal aeserve Board. Following a general discussion of the credit situation and possible trends during the remaining months of the year, the Committee ri left the meeting. I Mr. Miller then called for a vote on his resolution of September 15th, which at the meeting on that date was made vlecial order for today. Miller's motion being put by the Chair was lost, the members voting as follows: Mr. Platt, "awe" Mr. Miller, "aye" Governor Crissinger, "no" Mr. James, "no" Mr. Cunningham, "no" Mr. LicIntosh, "no" Mr. Platt stated that in view of the report of the Chaim= of the Open Market Committee, above referred to, he was doubtful as to the advisability of selling open market investments, but that he motion on €7eneral prinvoted "aye" on Mr. ciples. R.E?0 S OF 3Tit.;T'D ETC, C01.11E'TEES Dated, September 17th, decommending dhanes in stock at Federal deserve 19th, 3aAks, as set forth in the Auxili3ry Minute Book of this date. Approved. FA'.4 9/22/25 -6- itTilP0173 OF 3111\.NDI7,G C01.7.LII2T-SS:(Cont'd) Recommending action on applications for fiduciary powers as set forth in the Auxiliary Ilinute 300k of this date. Approved. Dated, september 1c)th, liecommending approval of the application of 1.1r. J. H. Harrison i'or permission to serve at the same time as director or the National State Bank of Newark, N.J., as director of the 1.:ontelair Trust Company of i:ontclair, N.J. and as director of the Caldwell National Bank, Caldwell, N.J. Approved. dinp; approval of the anplication of 11r. _iecommen Dated, September 19th, 0. H. Cheney for permission to serve at the same time as director of the Searsd.ale National Bank, Searadale, N.Y., as director of the American Exchange Pacific National Bank, New York City, and as director of the American Trust Company of New York City. Approved. Dated, September 22nd., The meeting adjourned at 1:10 p.m.
@FedFRASER